Thank you! This is really what I’ve been searching for past 6months and I finally found your channel🤩 It helps me a looooot😍
@jessicamoorhouse
3 жыл бұрын
So glad you found it helpful!
@aMAZEingU
28 күн бұрын
Love that your content is specific to Canadians. Well done!
@jessicamoorhouse
27 күн бұрын
Thanks!
@tes767
3 жыл бұрын
Great video that is so helpful to Canadian self-employed people! Thanks so much, Jessica.
@jessicamoorhouse
3 жыл бұрын
Glad it was helpful!
@calv.io.n8080
3 жыл бұрын
Thank you so much for this information; it seems like a bunch of disjointed information and random metrics for us non-accountants
@claudiacarcamo9565
3 жыл бұрын
Wow 🤩 super happy I found you !!! This helped me so much . Thank you ! Look forward to watching your videos 😊
@jessicamoorhouse
3 жыл бұрын
Yay so glad you found this video helpful!
@PavanBajwa
3 жыл бұрын
Hi Jassica, This video will absolutely help me in preparing my 2020 Taxes. Thanks.
@jessicamoorhouse
3 жыл бұрын
I'm so glad!
@madeleinemei-ling5625
5 ай бұрын
I’m a young person just starting to figure out contracting and this is so so helpful. Thank you for helping me be a bit more financially literate!
@jessicamoorhouse
5 ай бұрын
You're so welcome!
@Lavender3333
6 ай бұрын
Thank you! This was a very clear explanation
@jessicamoorhouse
6 ай бұрын
:)
@jaimetrevino4650
3 жыл бұрын
Thanks for the info! My wife and I are moving to Toronto from Mexico in 2021 and I'll be self-employed, so this info is gold for me :)
@jessicamoorhouse
3 жыл бұрын
In your case, I'd highly recommend finding a CPA to help you start up your self-employed business in Canada, just to give you a head start and to help you get the advice you need. One option that's Toronto based (who I use as my tax accountant) is The Wellth Company: thewellthcompany.com/
@jaimetrevino4650
3 жыл бұрын
@@jessicamoorhouse wow this is GREAT info! Just what I'm looking for. Thanks so much!
@MegaRepairs
3 жыл бұрын
The best informative video for me as a newcomer to this country I really enjoyed the video THANK YOU!
@jessicamoorhouse
3 жыл бұрын
Glad it was helpful!
@nicmon5214
4 жыл бұрын
Thanks so much for making this Video. Lots of great info.
@jessicamoorhouse
4 жыл бұрын
You're so welcome! Happy you found it helpful :)
@judithsarazin6102
3 жыл бұрын
oh! I just came upon you and your hustle this morning. Sipping coffee! I need advice so will subscribe, listen and reach out
@jessicamoorhouse
3 жыл бұрын
Thanks for subbing!
@cranberrykisses28
3 жыл бұрын
THANK YOU FOR THIS VIDEO!!!
@jessicamoorhouse
3 жыл бұрын
Omg you're so welcome!
@RyanThomasWoods
3 жыл бұрын
Loved the video! You mentioned you’d leave a link to EI to explain if it’s worth it for self employed but the link isn’t in the description :(
@jessicamoorhouse
3 жыл бұрын
I did? Oops! I'll have to rewatch to see what I was referring to but here are some great blog posts by others about this: milliondollarjourney.com/ei-benefits-for-the-self-employed.htm www.moneysense.ca/columns/the-facts-on-self-employed-maternity-leave/ turbotax.intuit.ca/tips/cpp-ei-considerations-self-employed-canadians-8648#:~:text=EI%20premiums%20are%20paid%20when,employer's%20portion%20of%20EI%20premiums.
@RyanThomasWoods
3 жыл бұрын
@@jessicamoorhouse thank you for these resources!!
@DCARA06
Жыл бұрын
I love how you explain this stuff. Very helpful
@jessicamoorhouse
Жыл бұрын
Thank you so much!
@MinnieOnCam
4 жыл бұрын
I found what EI claims to cover could be handled with a proper emergency fund. Then I realized I could save for CPP but I don't always make enough net profit to contribute to it so that money could be invested in the TFSA or RRSP and now RDSP.
@jessicamoorhouse
4 жыл бұрын
Ya EI didn't make sense for me either so I just save up extra for my emergency fund.
@lutes888
5 күн бұрын
Hey, love your videos! I am a full time public servant in Canada and started a side hustle as a contractor, focused on moving sheds. I find most videos about self employment is focused on one thing or the other ("regular" job or self employed), and I find having the sole proprietorship as a side hustle has less resources. I don't make much at this early stage, will have less than $20K in revenue for my first year. I'm looking for a tax return video to walk me through tax submissions as a full time employed member with a side hustle. If you have one of these, or if you can point me in the right direction, I would be most appreciative! Keep the videos coming!
@jessicamoorhouse
3 күн бұрын
If you work full-time plus you have your own business on the side, that simply means you're an employee and self-employed (I did this for years). When filling your tax return, you'd simply report your employment income from your T4 then any self-employment income you earned (you'd have to keep track of that yourself either with a spreadsheet like some of the ones I offer or bookkeeping software) and then don't forget to claim any business expenses that could be used as deductions. An accountant can help you with this filing or you can use software like TurboTax Self-Employed (that allows you to file a return for your employment income and self-employment income). But a very good idea to make a video on this topic! Overall, it's way simpler than you think as you'll discover upon filing your first return.
@alexandracroce9206
3 жыл бұрын
thank you so much for these videos - you are the only one on this platform who does this - ive come back to this video a few times now :)
@jessicamoorhouse
3 жыл бұрын
I'm so glad you found it helpful! I'll be putting out more videos soon, especially on business/tax related things since like you said, there's not a lot of videos out there.
@AntonWongVideo
4 жыл бұрын
thank you for this! It's kinda complicated trying to figure this out as a self-employed individual. I'm usually just getting help from my accountAUNT. You should consider including Timestamps in your description so that youtube will add chapters to make it easier for people to jump around the video!
@jessicamoorhouse
4 жыл бұрын
Thanks Anton, and thanks for the suggestion about timestamps.
@adrianwalker9917
3 жыл бұрын
Ahhh, so that's how people add Chapters to their videos!
@screwTHEwood
Жыл бұрын
Great video. Thanks! Just the answers i was looking for!
@jessicamoorhouse
Жыл бұрын
Amazing, so glad you found it helpful.
@Ranzy0
3 жыл бұрын
Thank you so much! Really helpful and informative. Have a good day!
@jessicamoorhouse
3 жыл бұрын
So glad you found it helpful!
@blackspider2274
3 ай бұрын
I had my self employment taxes done recently by a professional. I do deliveries. My delivery driving kms was more that half of my total driving kms. I was told that I can't claim my expenses such as car maintenance or gas purchases? I went by the guidelines set by CRA.
@alejandrobj1
3 жыл бұрын
Thanks for this video! I have a couple of questions I'd hope you can help me get answered: 1) Could you have a business AND still be an employee? I'm asking tax-wise how would that be beneficial (or not) 2) Tax advantages of a sole proprietorship vs a corp?
@jessicamoorhouse
3 жыл бұрын
1) Yes. I worked as an employee for many years while running my business at nights and weekends. Benefits tax-wise, I guess being able to claim business expenses. 2) It only makes sense to be a corp if your biz earns decent revenue (many experts say $100,000 or above). I'd suggest consulting with a CPA about if it makes sense for you to incorporate.
@alejandrobj1
3 жыл бұрын
@@jessicamoorhouse Thanks! Very helpful :)
@StrongMom
3 жыл бұрын
So if I file my taxes (with an accountant) it’s automatically done for me right? Like if I’m filing my taxes there’s no way to avert paying into cpp right?
@jessicamoorhouse
3 жыл бұрын
If you use a tax accountant, yes part of their job is to not only provide tax help, advice and preparation services, but also to NETFILE your taxes on your behalf (the electronic way to file your taxes to the government). You however can also NETFILE your taxes using online tax software like Turbotax, UFile, SimpleTax, etc. Your CPP contributions are included with your income taxes, so no matter if you use an accountant or use tax software, there's no way you can avoid paying CPP.
@evandoan8434
2 жыл бұрын
Thank you for the video! Very helpful :)
@jessicamoorhouse
2 жыл бұрын
You're so welcome!
@KeithandDev
2 жыл бұрын
Thanks! Helpful stuff! :)
@jessicamoorhouse
2 жыл бұрын
Glad you found it helpful :)
@kaumi17
2 ай бұрын
Hi Jessica, Thank you for this helpful video. Which banking account (savings or TFSA, or other?) do you recommend for putting money aside to pay income taxes and HST as a sole proprietor?
@jessicamoorhouse
2 ай бұрын
Just a high-interest savings account. You'd experience minimal tax savings putting that money in a TFSA earning such low interest compared to putting investments inside it, so that's personally what I'd save your TFSA room for (your investments that can grow inside it tax-free).
@kaumi17
2 ай бұрын
@@jessicamoorhouse Thank you!
@taranehsehat
Жыл бұрын
Hi Jessica, Thanks for the great and practical video you shared. My question is that what if you have a side hustle that doesn't give you a specific and consistent amount of money as your monthly income (like having an online shop), and you want to know how much you have to set aside monthly for all the tax and CPP and how much you can spend as your monthly net income? Because as you know sales can be fluctuating during each month! I think in all the tax calculators you have to put a specific amount as your annual gross income. How can I calculate this?
@jessicamoorhouse
Жыл бұрын
It's difficult if you haven't done a full year of business to have as a benchmark or reference, so the best thing you can do is once you have a few months of income to look at (i.e. 3 or 6 months), take the average monthly amount then multiply it by 12 to serve as your estimate to better determine what your average tax rate will be and thus how much to set aside for taxes/CPP that's not already being taken off your full-time paycheck. Then if you want to be safe, add some buffer money in case your estimate was too low.
@seorasspeirs8105
4 ай бұрын
Howdy, in one of your videos you recommended reinvest wealth. Im very curious about this. I noticed a few of theses accounts when you upload an invoice it doesnt take out what youd owe of taxes unless you add payroll (for an extra cost) as a solo runned business I dont need a full pay roll im just looking to take out the appropriate amount of taxes every time some money come in. Would an accounting app be the way to go? Or would one of your spread sheets be more than enough?
@vj1714
5 ай бұрын
Can you please explain the difference between paying income tax versus paying GST/ HST? I feel like I'm paying twice and I don't understand why and I have tried to call the CRA and have them explain it to me to no avail. I have a sole proprietorship and I charge HST on my invoices. I did my taxes through wealth simple and they asked for my HST number and all of that stuff and my expenses and gave me a number and then the CRA sent me a receipt for that and said I also owe for HST, I thought that was the same thing that I already owe for. I don't understand what the difference is. It's been extremely frustrating because it's a very large amount of money. I am more uncomfortable about not understanding than I am about the debt though.
@jessicamoorhouse
5 ай бұрын
Income tax is a tax you pay on any income you earn (whether that's from an employer or your sole proprietor business). GST/HST is a sales tax you add on to your goods and services. It does not get deducted from your income or business revenue. You charge your customers GST/HST and then remit it to the CRA. But sometimes you can keep some of the GST/HST for yourself through input tax credits (meaning if you pay GST/HST on qualifying business expenses, you can deduct that GST/HST from any GST/HST you collect from customers). You would file and pay any GST/HST you collect either annually or quarterly, but it's completely separate from your income taxes. For specifics on your situation, I'd suggest contacting the CRA to better understand what you owe and ideally work with a CPA who can help you this as well.
@danila_am_i
Жыл бұрын
Thank you. Tell me please if you know. Maybe exist Apps for Profi people? I will just try working as self-employed.
@freerme7202
3 жыл бұрын
Thank you Jessica for this video! It's super helpful! Definitely subscribed because of it! Do you have a video on registering a business or corporation in Canada? Specifically for self- employed individuals? I've heard everything from, it costs $10 online and is instant, to it takes a lawyer, $1,000 and months.
@jessicamoorhouse
3 жыл бұрын
I don't but a good resource to check out is Ownr www.ownr.co/
@freerme7202
3 жыл бұрын
@@jessicamoorhouse Thank you for the recommendation and the fast reply!
@lizalem7701
3 жыл бұрын
I'm so glad I found you! It is so difficult to find find someone is Canada for information like this! I do have some questions, I do work for a company right now and I am starting my side business as a soleproprietor, but I am a little confused how to pay taxes. Where do I pay my income taxes (if any) and if I already have taxes and cpp taken from my paycheque from my corporate job, do I still need to pay cpp? I did a lot of research but can't find enough to answer my questions. Thank Jessica! I'm so glad I found you. I will be buying your excel sheet for sure!
@jessicamoorhouse
3 жыл бұрын
So your employer is already withholding part of your income to pay your income taxes, CPP, and EI, and directly forwarding that money to the government. But for any self-employment income you earn, you need to keep track of all your business revenue and expenses, then set aside a portion of what you earn for income taxes/CPP. When you file your taxes, either using an accountant or tax software (i.e. Turbotax, UFile, SimpleTax, Cloudtax), you will claim employment income via your T4 as well as any self-employment income. I've got a video coming up that will show you how, but honestly, it's super simple. It just seems complicated if it's your first time.
@archsilber6482
3 жыл бұрын
Hi,@@jessicamoorhouse. How does the CPP from the employer and your self-employed business is represented under the T4? How does the self-employed portion of the CPP is actually paid back to the government? Thanks in advance and thank you for sharing this information! All the best to you!
@jdreamhunter
8 ай бұрын
Hi Jessica, do you still do personal consultations? If yes, how can I get in touch with you? If not, can you recommend someone like you who understands this process of filing taxes about multiple income sources as an influencer/freelancer? The way you described what you do in this video is somewhat similar to my journey so would love to pick your brain! And thank you for all the videos you made, you are literally the best on YT when in comes to Canadian taxes! Super helpful channel for us self-employed people.
@jessicamoorhouse
8 ай бұрын
I've never done consultations. I've only ever worked with individuals as a financial counsellor for basic financial planning, never tax planning. A CPA can help you with your tax planning needs.
@austinoleksiw5937
3 жыл бұрын
Very informative video. Thanks for the information. I’m considering buying a car to make money renting out on Turo (peer to peer car renting platform, like Airbnb for cars) and I can’t find any information on what filing taxes for this situation looks like. Would it fall under self employed income like driving for Uber or rental income like Airbnb?
@theangrycanuck8331
4 ай бұрын
Can I ever cash out my E.I and then opt out of it when I go full time self employed? Or do I have no access to it until I'm unemployed without a self prop?
@jessicamoorhouse
4 ай бұрын
That's not how E.I. works unfortunately. You can't ever cash out your E.I. contributions when you choose. You can also gain access to Employment Insurance if you lose your job within its specified criteria and are actively looking for new employment. With that said, if you quit your job and thus stop contributing to E.I. through your employer, and then become self-employed, you can voluntarily opt into E.I. again or choose not to. However, once you opt-in as a self-employed person, but there are restrictions on if you choose to leave the program later on www.canada.ca/en/services/benefits/ei/ei-self-employed-workers/withdraw.html
@harlemespanol
9 ай бұрын
Wow! Very informative video, Jessica. If I generate 25K in business income, then I register for my HST number, do I pay tax on the 25K or just the money I generate after I register for my HST number?
@jessicamoorhouse
9 ай бұрын
Once you register for HST, then you need to start collecting and remitting HST. And since 25k is under the 30k threshold then no you wouldn't have to pay HST on that.
@harlemespanol
9 ай бұрын
@@jessicamoorhouse Would I report my total income or just the income after registering for HST?
@HalleyDavies
2 жыл бұрын
On the topic of EI: What if you are primarily an employee, apply for EI because of a shortage of work, but have the opportunity to accept self-employed work to reduce dependency on EI? It seems like EI Canada puts these kinds of claims 'on hold' despite the employee having paid into the EI program. Does an employee doing some self-employed work make that person ineligible for benefits? If they expect to have more self-employed work in the future, would opting into the self-employed EI program help prevent headaches?
@redrose894
2 жыл бұрын
Super helpful video! Thank you. I just had one concern. Are you required to pay your taxes quarterly if you’re considered self employed in Canada? I read an article and I thought that wasn’t the case and it runs through a fiscal period ie. January 1st to December 31st. Side note: I don’t have a business I earn my self employment income through weekly commissions.
@jessicamoorhouse
2 жыл бұрын
For the first year of self-employment, you would do annually. So if you started your business in 2022, you wouldn't have to file and pay your taxes until tax season in 2023. The second year likely they would require you to pre-pay your income taxes quarterly, but you still wouldn't file your income taxes until before the tax deadline (April 30). You can find more info here: www.canada.ca/en/revenue-agency/services/payments-cra/individual-payments/income-tax-instalments/who-pays-instalments.html
@alexischarest378
Жыл бұрын
@@jessicamoorhousewhy is this so confusing and no info all in one spot?! I get random payments all the time and I have no idea how to report them… Do I literally tell them I got 45 e transfers from clients totalling this much?” 😅😅 I am so lost
@WildShiversASMR
12 күн бұрын
🎉 this channel is great
@jessicamoorhouse
11 күн бұрын
Thanks!
@antonygeorge3584
5 ай бұрын
I am employed and doing skip the dishes when I get time…paid the maximum CPP amount through employer for the year. Do I have to pay CPP for skip income as well even though I did maximum through employer?
@jessicamoorhouse
5 ай бұрын
Once you've hit the CPP maximum, then you don't pay any more no matter if you have other income streams.
@antonygeorge3584
5 ай бұрын
@@jessicamoorhouse Thank you so much..again little bit confused..what could be the maximum amount considered while having both employed income and self employed income? Max under employed income or max of self employment income
@Fighting_spiritus
9 ай бұрын
Do I have pay taxes for money which I put in savings account (stocks) and don’t sell ?
@jessicamoorhouse
9 ай бұрын
For stocks, if they pay a dividend, then you pay tax on the dividend distribution. Otherwise, you only pay tax on the capital gain (which is realized when you sell). But if you have cash in a savings account, you pay tax on any interest you earn.
@Moudar-is-me
3 жыл бұрын
Thanks for the video If i have a small business do i do my taxes once a year like my personal ?
@jessicamoorhouse
3 жыл бұрын
If you run a small business as a sole proprietorship then it's not a separate tax return, it's the same as your personal tax return.
@Moudar-is-me
3 жыл бұрын
@@jessicamoorhouse thanks i suspect that that i needed to make sure They make it to be more complicated than it is
@jessicamoorhouse
3 жыл бұрын
@@Moudar-is-me It can definitely seem a bit complicated when you're just starting out, however using tax software (i.e. TurboTax) or using an accountant can definitely make the process easier. :)
@ankitrawat775
3 жыл бұрын
For software services prvovided to USA company from canada via canadian company Are they 0 rated GST?
@roubafattal8162
8 ай бұрын
Thanks a lot, this video was very helpful! I have question regarding tax. If I have permanent day- time job linked to a chequing account and a registered online business linked to a separate regular chequing account (not business) would this increase the deducted tax on my permanent job income? Please note that I'm in Nova Scotia ( if this matters)
@jessicamoorhouse
8 ай бұрын
If you want more income tax taken off your full-time job's paycheque, you need to talk to your payroll department and request it. It's not automatic. Having separate bank accounts doesn't have any effect on anything. As a sole prop, all the money you earn, either from a permanent job or self-employment is taxed at your personal tax rate.
@roubafattal8162
8 ай бұрын
Thanks for the fast reply!@@jessicamoorhouse
@botflyguy7814
3 жыл бұрын
Hi thank you for this video! Im wondering if you know how much money I can make from a side hustle (in this case selling things on craigslist) before I have to report it on my taxes?
@jessicamoorhouse
3 жыл бұрын
You have to report every single dollar of self-employed income you earn on your tax return. There's no threshold. Not reporting it is considered tax evasion and that's illegal.
@michelefisher5171
Жыл бұрын
Hi Jessica. I run a Veteran Counselling practice in Ontario. I am considering whether to incorporate. A while back you suggested a company I think in Montreal (maybe) their commitment was to be accountants etc different than other companies. I forget the name. Can you suggest a company or 2 of 3? And is there such a thing as a corporation tax calculator for Ontario please? I love your site! Thank you for education us!
@jessicamoorhouse
Жыл бұрын
Yes, it was www.reinvestwealth.com/. But if you're looking for an accountant who you can work one-on-one with, you can also check out Avalon Accounting or The Wellth Company.
@VladProkhorovDrums
Жыл бұрын
Thank you Jessica, this video was very helpful. You had mentioned CPP for small business owners is 10%, where would be a good place for me to find out the rates of the federal and provincial tax I would have to pay in Ontario?
@jessicamoorhouse
Жыл бұрын
I always suggest using a tax calculator like these two to help you estimate how much you should set aside for taxes and CPP: www.wealthsimple.com/en-ca/tool/tax-calculator or turbotax.intuit.ca/tax-resources/canada-income-tax-calculator.jsp
@actioncore
3 жыл бұрын
Good morning Jessica, Thank you for sharing such great idea and very helpful. Also that would be awesome if you could make video how to file the quarterly tax filling. I am sole proprietor business owner and if you can say something with sample that would be really helpful.
@jessicamoorhouse
3 жыл бұрын
Absolutely! It's in the plans once I finished studying/pass the CSC exam next week. Very excited to getting back to making more videos!
@larryc1964
3 жыл бұрын
If I stay under the radar and can’t be bothered to do a tax return because I’m showing no income there’s no need to file . Too expensive taxes and too much hassle. No HST number so I have trashed that too. I buy most all my supplies from private sellers for cash. I don’t have receipts. It’s just a pain. I wish the government would just leave us alone
@jessicamoorhouse
3 жыл бұрын
Well that's called tax evasion as is illegal so I wouldn't recommend doing that. The CRA could audit you and could require you to pay back any required taxes.
@Sophie-jl3sj
Жыл бұрын
Sorry, CRA told me that if I have a self-employment income, also an employment income, then the CPP max would be calculated separately, Is that right? thank you so much !!!
@jessicamoorhouse
Жыл бұрын
To get an idea of what you would owe for CPP, I find it helpful to use a tax calculator like this one www.wealthsimple.com/en-ca/tool/tax-calculator
@Sophie-jl3sj
Жыл бұрын
@@jessicamoorhouse thank you so much, the link is super helpful!
@MinnieOnCam
Жыл бұрын
I was searching for RRSP and self-employment videos, but I'm having no luck. I want to make sure my RRSP is invested regularly but I am 100% self-employed. Do I double cost average invest monthly. or do I invest a little in it, so it will be there to supplement my income when I am 65 and older and ODSP kicked me off.
@jessicamoorhouse
Жыл бұрын
There are a lot of things to consider, for example depending on your tax bracket a TFSA may be a better vehicle than your RRSP. I'd recommend speaking with a financial planner who can look at your entire financial picture and see what makes the most sense to do. In terms of dollar cost averaging or doing a lump sum, it depends on how regular or irregular your income is. If it's pretty regular, setting up auto-contributions can be great. If your income is variable, it may make more sense to do lump sums throughout the year.
@MinnieOnCam
Жыл бұрын
@@jessicamoorhouse Thanks. I have an appointment made this month.
@daniellebee9
2 жыл бұрын
Do you have any advice on being a new KZitemr and setting up your bank account, when to incorporate into a business? If you should.
@jessicamoorhouse
2 жыл бұрын
Incorporating can be expensive and complicated, so it really only makes sense if your business is earning enough revenue. There are a few rules of thumb but for me I wanted to wait until I was earning consistent 6-figures for a few years and was running out of RRSP room to lower my tax bill. For me, I was a full-time sole prop for 4 years and in my 5th year decided to incorporate. But if you're just starting out as a sole prop and looking for help setting up your bank accounts check out this video and read Profit First. kzitem.info/news/bejne/roV_wGahpJGXdnY
@mrandmrsnikhil6635
3 жыл бұрын
Hi Jessica can you upload more videos on pst gst ,when we will have to deposit monthly, quarterly or annually ? your videos are best.
@jessicamoorhouse
3 жыл бұрын
Yes absolutely! Currently working on them so hopefully will have videos to publish in the next week or two. Just trying to finish up things with my investing course so I can launch it this month, but once that's done will have more time for KZitem.
@matthewtriplett6643
Жыл бұрын
If you get a loan (Ag Loan for land)...is the payment on that land considered an expense? Thank you
@jessicamoorhouse
Жыл бұрын
In general, you can write-off the interest you pay on a business loan. But getting a loan to purchase land is a bit more complicated. You can find more info here www.taxtips.ca/real-estate/interest-expense.htm
@jykl608
2 ай бұрын
Great video thanks for uploading. Is income obtained via a (personal) paypal account considered income in Canada?
@jessicamoorhouse
2 ай бұрын
Yes :)
@jykl608
2 ай бұрын
@@jessicamoorhouse thank you... I will report it.
@dotflakes
Жыл бұрын
Thank you for this amazing video. I have a confusion while trying to file self--employment return. I don't find where to enter product cost. I am an online retailer; I don't have any inventory. i ship out from supplier to customer. My COGS is mainly product cost and shipping fees, but there are only 3 fields - direct wage cost, subcontract and other costs. - no field for product cost. Not sure should I use direct wage or other cost. Could you please help me with this information? Thanks in advance.
@davidquintero1890
3 жыл бұрын
for anyone: at 06:01, isn't it supposed to be Net Income? Isn't net income the result of gross income minus business expenses? I'm very confused
@jessicamoorhouse
3 жыл бұрын
Hey David, so I think where some confusion lies is that people tend to use conflicting terms to mean the same thing. For me, I use the term net income to mean the amount of money you end up with after business expenses AND after you've paid your income tax, CPP, and EI. For example, if you worked for an employer and earned a salary, you would earn your gross income (i.e. $80,000), and then after tax, CPP, EI, and any other deductions (such as health benefits) were taken off your paycheque, you would end up with your net income (i.e. $60,000), which is the amount of money you actually get paid by your employer. Since I run my business as if I'm an employer who pays an employee (also me) a salary, I like to use the terms gross and net income in that context.
@ertugrul5699
3 жыл бұрын
Thank you. Subbed to the channel
@jessicamoorhouse
3 жыл бұрын
Thank you!
@CutterMasterArt
3 жыл бұрын
Does "EI" stop paying once you report your first pay from KZitem?
@jessicamoorhouse
3 жыл бұрын
You can earn income on EI, but how much of that income you get to keep depends on how much you earn. More info here: www.canada.ca/en/employment-social-development/programs/ei/ei-list/working-while-claim.html
@glamslam4124
Жыл бұрын
I recently registered my business as sole prop. What if i earned less than 35k$? Do i have to contribute to cpp and ei? Do i have to pay gst/hst?
@jessicamoorhouse
Жыл бұрын
If you earn over $30K, yes you'll have to register for GST/HST. And everyone has to contribute to CPP but if you're fully self-employed EI is voluntary.
@mikaandjiji23
2 жыл бұрын
Nice Video! I have a question, I run 3 etsy stores and selling different items . Now I'm confuse on how to register my business name. Can you give advise? As you mention in your video, you have several venture like, selling spreadsheets, youtubes, freelances, etc. how did you register business name?
@jessicamoorhouse
2 жыл бұрын
You can either use your legal name or register your business using something like Ownr
@codylake343
Жыл бұрын
Very helpful thank you this. If I already max my CPP contributions through my employer, do I also have pay in for self employed income?
@jessicamoorhouse
Жыл бұрын
No, once you've hit the max you wouldn't owe more even if you earned self-employed income. in 2022, the earnings ceiling was $64,900, so if you earned that or more and you and your employer both contributed to CPP and hit the maximum contribution amount of $3,499.80, then you're done your contributions for the year.
@glowwithfranny
3 жыл бұрын
How about if you sell on Etsy? Do we need to provide Etsy with a Taxpayer ID if we make less than $30K a year? And how do we go about getting a taxpayer id?
@jessicamoorhouse
3 жыл бұрын
I'm not really familiar with selling via Etsy, but I'm guessing it's just an online marketplace so the same income tax and sales rules should apply as if you were to sell them directly yourself or via your own website. In terms of taxpayer IDs, you may find this article helpful, otherwise I'd contact Etsy to find out specifically what they need from you. www.thebalancesmb.com/canada-business-tax-id-number-2948590
@dhavalpatel-fb2vg
3 жыл бұрын
que? : i got paid by cheque by employer with 10500$ in total for 4 month last year, with no deduction of tax or cpp; how to file this particular income??
@jessicamoorhouse
3 жыл бұрын
Sounds like you're a contractor so they don't deduct taxes and CPP at source. In that case you'd file as a self-employed person.
@helenguenther2318
3 жыл бұрын
How do you claim lease agreement on commercial truck and trailer?
@jessicamoorhouse
3 жыл бұрын
You can find more info about motor vehicle expenses for tax deductions here www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/motor-vehicle-expenses.html
@britt3286
3 жыл бұрын
How does this work for a side hustle that is below the $30,000 mark?? From what I've read, you do not need to worry about any of this if you are below that dollar amount quarterly/annually??
@jessicamoorhouse
3 жыл бұрын
That $30,000 threshold is in regards to if you have to collect/remit sales tax. If you make even $1 in self-employed income, you must declare it on your tax return and pay tax on it.
@muslimcosmetics
2 жыл бұрын
The CRA would not answer me, I called and got two different answers. Do non-registered small businesses get tax credits on their expenses? or do I have to register to get that? Cause one said yes, the other said "No, you have to register to get any deductions". I am so lost. If I register my business does the tax rate change? I was lost at the whole tax rate thing. I was seeing alberta had "the lowest small business tax rate" and thought wow if I move there and open my business I will save money, but then I was lost and confused if the tax rate is lower, why doesn't everyone become their own business so they can save the 25% or more tax rates? Or do they make you do two different tax returns? One for the business one for you, taking 2-8% from the company, and whatever 25% or whatever from you, then it would mean your getting double taxed. I am so lost help me anyone. I don't get it at all.
@jessicamoorhouse
2 жыл бұрын
If you're asking will you get input tax credits if you're a sole proprietor registered for GST/HST but haven't registered your business because you're just using your legal name, then I should think yes. I'm wondering if the CRA was confused by your enquiry because when you say register, they may have assumed you weren't registered for GST/HST (separate from registering your business). If you aren't registered for GST/HST, then no you cannot claim ITCs.
@muslimcosmetics
2 жыл бұрын
@@jessicamoorhouse I mean, nothing to do with GST, I am not charging it because I do not make anywhere near 30,000, I am not registered for GST nor registered as a business but rather, If I am a self-employed business selling soap or other handmade things, am I allowed to deduct expenses for the supplies, my office space and any other business expenses on my tax returns? H and R block told me I can, 1 employee told me I could but then another said I could not and was confused.
@jessicamoorhouse
2 жыл бұрын
@@muslimcosmetics Ah you're asking if you can deduct business expenses if you're a sole proprietor. Then yes of course you can as long as they are eligible business expenses: www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html
@copyrightfreevideobyttf
2 жыл бұрын
Hi Jessica! Very glad I found your channel! This will be very helpful information for me in the upcoming chapter that's currently happeningin my life. I am Canadian as well. Subscribed!
@jessicamoorhouse
2 жыл бұрын
Thank you!
@DUDEMIKE8
3 жыл бұрын
Thanks Jessica, this was super helpful. I'd like to be self employed but not sure if I should register as a business (sole proprietorship, I guess). I found an activity that seems profitable and enough to sustain myself on. Do I have to register as a business?
@jessicamoorhouse
3 жыл бұрын
You only need to register your business if you want to have a different name than your personal name. For instance, if your name is Mike Smith, you can just be a sole prop under that name without registering anything. But if you want your business name to be Mike Smith Designs, then you would need to register. Also, once you're required to register for GST/HST, you'll be assigned a business number along with your GST/HST number. But if you register a business name, you get a business number upon registration of your biz name.
@DUDEMIKE8
3 жыл бұрын
@@jessicamoorhouse Thank you! That makes sense now.
@k.alexanderart
2 жыл бұрын
This video has been so helpful! I have a question; If I have registered a business name (My name + another word), do I need to register for another bank account for my business, or is this only necessary if I accept cheques which I currently do not do and probably won't need to for a long time. Thanks!
@jessicamoorhouse
2 жыл бұрын
Sounds like you may need to register your business. Unless is just your legal name (ie. Katie Alexander) then you don't have to register. But if it's something like Katie Alexander Art Designs, then yes you'd have to register. Here's more info though about it: www.ownr.co/blog/registering-your-small-business-easy-peasy/
@k.alexanderart
2 жыл бұрын
@@jessicamoorhouse thanks so much in going through the process of registering now so I'll sort a separate banking account too
@jdm2envy
3 жыл бұрын
What about if you have online store registered in canada and 90% your customers/buyers are from USA Market how will taxes work in this situation?
@jessicamoorhouse
3 жыл бұрын
If you're a Canadian business, you do not charge sales tax to customers who are outside of Canada like the U.S. However, you do have to pay income tax on all worldwide income earned through your business.
@Danielily1
2 жыл бұрын
Thank you for the Video, Jessica. What if I want to have one or two businesses online and sell in the States? I was told it's better to get an LLC in the States and that it's cheaper. Would I be taxed in the US and Canada if I do this? Thanks for the info.
@jessicamoorhouse
2 жыл бұрын
You'd have to talk to an accountant about that, I'm not familiar with setting up a US-based company. But if you have a Canada-based company and simply serve customers who live in the US, then you would pay Canadian income taxes on that revenue, but you wouldn't charge US customers sales tax.
@michaelcheung9936
8 ай бұрын
Thank you. I'm thinking of searching remote jobs (online) and the employer maybe US-based so I wonder if there's any foreign tax I need to consider? Also when you file for tax return maybe like online u-file then can you contribute CPP? Do I need to calculate the CPP amount I need to pay myself? Also same for EI do I need to calculate how much I need to pay? And do you contribute CPP/EI only once a year? Let's say you just contributed EI on March once a yr then you got laid off in Dec then can you stay apply for EI for money? Sorry too many questions 😂
@jessicamoorhouse
8 ай бұрын
If you're using tax software, it will calculate how much CPP you need to contribute (though if you're self-employed making regular tax installments throughout the year part of that goes towards CPP). EI is a voluntary program when you're self-employed that you have to opt into. If you're employed, then part of what's deducted off your pay is income tax, CPP and EI (they automatically enroll you in EI). In terms of working for a US employer, I'd suggest working with a cross-border tax accountant as the tax rules would be different than simply being an employee or self-employed in Canada.
@michaelcheung9936
8 ай бұрын
@@jessicamoorhouse Thank you
@reyflores4575
2 жыл бұрын
I am incorporated and working as a contractor on an hourly wage. I normally work 8 hours per day on weekdays but I do not work during corporate holidays. I get paid every month and my paycheck is not always the same. What would you recommend for a software to use in my case.
@jessicamoorhouse
2 жыл бұрын
To organize everything? Quickbooks is a great software for your corporate bookkeeping. It's what I switched to when I incorporated after using Freshbooks for years.
@lillianthomas9861
Жыл бұрын
Do you know if there's an age cap to opt out of the cpp contributions for self-employment. I know there is for employment, I'm not sure if it's only after 65 or not.
@jessicamoorhouse
Жыл бұрын
This resource may help www.canada.ca/en/revenue-agency/services/tax/individuals/topics/cpp/you-stop-contributing-cpp.html
@ShrewdWifeLife
Жыл бұрын
@@jessicamoorhouse thank you very much, I will have a look!
@jessicamoorhouse
Жыл бұрын
@@ShrewdWifeLife :)
@jausmy96
3 жыл бұрын
How would I go about getting things such as dental insurance and other medical insurance if I'm self-employed?
@jessicamoorhouse
3 жыл бұрын
There are two routes. You could either self-insure which means saving up cash in a savings account to pay for those things (dentist, eye doctor, prescriptions) that aren't covered by the government yourself. Or you can get private health insurance through one of the insurance companies in Canada (i.e. Sun Life, Manulife, Wawanesa, etc...). The important thing is to calculate how much insurance would cost compared to being self-insured to see if it's actually worth the cost of private health insurance. There was an interesting blog post featured on Boomer and Echo that talks about this you may be interested in boomerandecho.com/health-and-dental-insurance/
@emilywoods4048
3 жыл бұрын
super helpful, thank you! Just one question, I will be operating as an Independent Contractor and am super confused as to how this will work in filing my taxes. In order to make business claims and pay CPP & Income Tax as a self-employed contractor will I need to register a trade name in my province? The self-proprietor tax forms I have seen all include a business #
@jessicamoorhouse
3 жыл бұрын
You're automatically a sole proprietor if you just use your legal personal name. You only need to register if you plan on using a business name (i.e. XYZ Services). That being said, make sure to keep track of your income as you may need to register to collect and remit sales tax kzitem.info/news/bejne/l42M0plrip53pYI
@haidersyed6554
3 жыл бұрын
Hi There, Thanks for a wonderful video, I have another question. Do you have any experience filling W-8BEN form? I do affiliate commission sales for a US based company and they are asking to to fill and submit W-8BEN form. Do you think I should fill and submit that? Do you have any template for guidance?
@HealthbeautyluckyshahBlogspot
3 жыл бұрын
Hi, I am in Canada on visitor visa and my spousal application is in process (just start) I do freelancing on Upwork and now it's asking for HST on my income. Now I am confused does it apply to me? As I don't have any Canadian I'd yet and I am not entitled to avail any facility here I have to pay from my pocket. So should I change the address back to my home country till I get any I'd here and then I pay taxes or if I keep Canadian address how I will pay tax ( I don't have any I'd) how government know I am paying where I will pay? I don't have any bank account here in Canada?
@jessicamoorhouse
3 жыл бұрын
I'd suggest contacting a CPA who can help you with your situation.
@zeal82
Жыл бұрын
Hey Jessica, i heard that many small businesses are paying about 50 percent taxes in Ontario annually. Is this true?
@jessicamoorhouse
Жыл бұрын
It all depends on how much income they earn and what their average tax rate is. You can play with different scenarios using a tax calculator turbotax.intuit.ca/tax-resources/canada-income-tax-calculator.jsp
@zeal82
Жыл бұрын
@@jessicamoorhouse ok thanks 😊
@jonathanbrunomarquessantos5279
2 жыл бұрын
Hi Jessica! Great video! How should I calculate these taxes if I just moved to Canada and I am working remotely (as a contractor) for a company in the US? Thanks!
@jessicamoorhouse
2 жыл бұрын
I'd suggest talking to an accountant.
@jonathanbrunomarquessantos5279
2 жыл бұрын
@@jessicamoorhouse thank you!!
@aljosh007
3 жыл бұрын
Hi. If I do the tax filing myself, do I go to IRS or CRA website? And what form(s) do I have to submit? I believe the 1099 we receive is the one we keep for our records. 1040 form, Schedule SE, Schedule C?
@jessicamoorhouse
3 жыл бұрын
If you're Canadian and filing Canadian income tax, then the CRA (stands for Canada Revenue Agency). The IRS is for the US. I also wouldn't suggest trying to do your taxes by hand, there are easier ways to do it. You can use SimpleTax which is free tax software, or TurboTax or UFile which I believe can be free if your taxes are simple, otherwise they charge a fee. Or if you're self-employed and feel overwhelmed and are looking for advice, find a tax accountant to help you.
@mhzs4009
4 жыл бұрын
Hello there, So normally I don't write comments however my wife and I have been talking and she notices that I'm genuinely happy when I'm at home getting items prepared to sell on ebay and around locally and been doing so for a few years now. The amount wasn't much when I began though I noticed a huge jump in income recently and I've been selling a good amount of items (mainly video games; entertainment is key right now it seems) and thought, maybe I can do it full time. Well with this said, we were wondering if you could answer this question for us. Like I said earlier, been selling for years but only here and there but now, for the last few months I've been basically home all day due to being out of work; on-call job, so I've been taking that time and selling alot more online. So the question would be, should I just continue on how I've been doing things or should I open the gates and right down that I'm in business now? Would it make a difference for tax time? Thanks in advance.
@jessicamoorhouse
4 жыл бұрын
Whether you do it on the side or full-time, it doesn't really make a difference in terms of your taxes. You still need to declare whatever income you're earning from selling items on eBay and pay taxes on that income. The only thing to look out for is if you earn more than $30,000 in business revenue then you do need to register for GST/HST (and possibly provincial tax) and charge your Canadian customers sales tax depending on the place of supply of the goods you're selling. Hope that answers your question :)
@ThinkOFood
3 жыл бұрын
Hi Jessica, Thank you very much for the video. It is very helpful. Hopefully, my YoutYube side hustle will start rolling this year and I will be able to shift to being self-employed. I do have a question about the RRSP if you have any knowledge about it when you are self-employed. I know that the RRSP room is calculated as 18% from *earned incomed* , the question is Is the RRSP room will be calculated also from the self-employment or would it only from Employment income? Thank you for your help and definitely Subbing 🙏🙌
@jessicamoorhouse
3 жыл бұрын
It's calculated from all earned income, so if you are an employee and earn self-employed income, then it takes both into account. Or if you're just self-employed, then yes that absolutely counts towards your RRSP contribution room. Otherwise that would be a big disadvantage to being self-employed not getting any RRSP room!
@ThinkOFood
3 жыл бұрын
@@jessicamoorhouse Yea that what I thought. Thank you Jessica
@jazerortiz3283
2 жыл бұрын
Thank you so much for this video...very informative...I do have a quick question...I do not own a business but I've been recently hired by a Tutoring Company as a tutor (they refer to me as an independent contractor)...They will not be providing me a T4 since I am a contractor... when its tax season, what tax form do I need to fill out to put in the amount of money I earned from this tutoring company as a tutor?
@jessicamoorhouse
2 жыл бұрын
If you're an independent contractor, that means you're self-employed, not an employee. You can find more info here: www.olympiabenefits.com/blog/a-basic-guide-to-independent-contractor-taxes-in-canada
@samer4079
2 жыл бұрын
Thanks Jessica Do you need a license for let’s say filling up taxes as a freelancer or book keeping in Canada?
@jessicamoorhouse
2 жыл бұрын
If you plan on running your freelance business under your personal legal name, you don't need to register it in order to bill clients, pay taxes, or do your own bookkeeping. However, if you plan on running your business under a different name, yes you would need to register it. You can find more info here: www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-self-employed-income/setting-your-business/sole-proprietorship.html and here www.canada.ca/en/services/business/start/register-with-gov.html
@hannahsummers9008
2 жыл бұрын
Thank you for your videos this is really helpful but I do have a question. The current CPP contribution percentage would be 11.4% in 2022 for self employed (if I have calculated that properly!) Say I make 60k gross and I am required to pay 20.5% Federal and what looks like 9.15% Provincial tax (just getting those number off Canada.ca) does this mean that I will be paying 41.05% in total Taxes when I add all of this together? Thank you!
@jessicamoorhouse
2 жыл бұрын
I'd suggest using this calculator to get an estimate of your taxes and CPP owed turbotax.intuit.ca/tax-resources/canada-income-tax-calculator.jsp
@tneverloses
Жыл бұрын
So if you have sole proprietorship set up in your biz, does this apply to them or when you incorporate biz?
@jessicamoorhouse
Жыл бұрын
This video is specifically about sole proprietorships.
@shuki713
2 жыл бұрын
Hi Jessica, thank you for your video, I'm a self employed small business owner, how do I contribute CPP? Do I pay for it with my tax? Thanks
@jessicamoorhouse
2 жыл бұрын
Correct, it's not a separate bill, it's part of your income tax bill (so when you pay your income taxes owed you're also paying your CPP).
@sylviadumais4898
3 жыл бұрын
Hi I'm so glad to have found your channel especially for Canadians. I sell on etsy and was wandering how does that work for tax time? I am in Alberta
@jessicamoorhouse
3 жыл бұрын
It means you have to report all income you earn from Etsy as self-employed income but you can also report applicable business expenses to reduce your taxes.
@sylviadumais4898
3 жыл бұрын
@@jessicamoorhouse thank you for getting back to me so quickly. I appreciate it , tks for the information.
@jessicamoorhouse
3 жыл бұрын
@@sylviadumais4898 Happy to help!
@bakiiio
Жыл бұрын
Great video! I have one question regarding sole proprietorship - My wife started working as a contractor for a US company recently, I'd like to pre-pay any income tax (federal and provincial - Ontario). Is it possible to pre-pay as she is going to be paid bi-monthly?
@jessicamoorhouse
Жыл бұрын
Typically for the first year of sole proprietorship you just pay your tax bill when you file your taxes, but after that the CRA usually moves you to quarterly or monthly pre-payments. So for now, just put aside money each paycheque in a savings account for tax time (why give the CRA money early when you can earn a little interest on it in a savings account before handing it over to them?).
@bakiiio
Жыл бұрын
@@jessicamoorhouse We're in a unique situation where we also have to pay taxes in our home country for any income we earn. These taxes need to be paid exactly the same day we earn the money according to our country's rules. This is why I want to pay tax up-front in Canada, if I don't then I'll have to pay taxes in my country which would be exempt if I had already paid them in Canada according to a treaty to avoid double-taxation.
@jessicamoorhouse
Жыл бұрын
@@bakiiio I'd suggest talking with an accountant, sounds like a very unique situation.
@maria_princ
2 жыл бұрын
Does it work only for Canadian citizens? If a person has a 'Worker' visa, may they be self-employed in Canada?
@jessicamoorhouse
2 жыл бұрын
I'd assume no since in order to get your work visa in Canada you need a work permit through an employer. To learn more about how to immigrate to Canada as a self-employed person visit www.cic.gc.ca/english/helpcentre/answer.asp?qnum=287&top=6
@goodlifemusic9577
3 жыл бұрын
Hi Jessica. Thank you for such an amazing video. I would like to ask you some questions since I already started my. sole proprietorship business and most of my clients pay me cash... Do you know how can deal with this when reporting the income and doing the taxes? Thank you a lot!
@jessicamoorhouse
3 жыл бұрын
It's the same process if you were to take payment via cheque or digitally. You need to report all your business income and pay taxes on it. To keep it organized I'd use a spreadsheet to keep track or accounting software.
@goodlifemusic9577
3 жыл бұрын
@@jessicamoorhouse Ok, I understand. I will keep my records on a spreadsheet in case they ask me for my records. But, my business is very small, so I just want to report my income to make things right. Thank you a lot Jessica “You are amazing”.
@jessicamoorhouse
3 жыл бұрын
@@goodlifemusic9577 Happy to help! In addition, keeping banking records of deposits and emails in which payment is discussed might be helpful to keep track of things also.
@RABWOODSHOPSTUDIO
3 жыл бұрын
Great video, question. My Daughter is a18 year old student and started working part time as a self employed coaching equestrian jumping, she gets paid by the hour, expected revenues are anywhere from 750 to 1500$ per month... heard from others that she won’t get a t4 so pretty sure the self employed route is what she is. wondering how that will work for her next year, what deductions can she claim on such low income, I suspect no gst or pst since she will make less the 12k? Anything else to watch out for?
@jessicamoorhouse
3 жыл бұрын
If she's making less than $30,000, then she doesn't need to register fro GST/HST. A good place to confirm if she is considered a contractor to the company she is working for and thus technically self-employed is her pay stub. Check to see if they are taking off tax, CPP, and EI. If not, then she will need to remember to set aside a portion of her earnings for income tax and CPP. A great calculator to use for that is simpletax.ca/calculator. In terms of deductions for tax time, here's more info on that www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html
@alexischarest378
Жыл бұрын
I just have sooo many questions! Like if I make $5000 in income, but $3000 was just e-transfers for rent from my partner - how can they know the difference? If they want me to pay them why do I need to keep track of everything 😂😂😂 I don’t even know how!! I am a photographer and SOOO lost, none of these videos even help me, I need it explained like I am a child lol. I’ll be making $15,000 in photography this year so far and not sure how to go about paying taxes come 2024 ..
@alexischarest378
Жыл бұрын
Like if I got half the payment in 2022 but other half in 2023 all from one person, how do I record everything? Starting from January 1 what is the best step to take? How do I know when to charge HST? (I know I need to get my own number and stuff, but..) I know once you make $30,000 you need to charge tax to clients - but is this after you’ve made that much or if you plan to make that much this year? It just seems so confusing. And if I’m the one doing all the work, why do I need to even pay taxes lol? If people are e-transfering me money who will know if it was for work? Or just paying me money they owe me? Gifts? Etc
@jessicamoorhouse
Жыл бұрын
I think it's fairly easy for the CRA to see the difference between earning income and receving e-transfers for rent. Also that's why you need send invoices to clients as proof that you're receiving income, and then of course keep any receipts for expenses that could be deemed business expenses for deductions.
@jessicamoorhouse
Жыл бұрын
For the example you share of only getting half the payment, that's why it's important to decide if you're using the accrual method or cash method of accounting. You can learn more here www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-guides/glossary/accrual-cash-accounting And for everything GST/HST watch this kzitem.info/news/bejne/l42M0plrip53pYI
@tassianelson296
3 жыл бұрын
Hi! I make around 90k per year from my employer and they take off enough income tax for that amount. For my side hustle, I’ll make about an additional 10k per year. To be safe , Do I need to put aside about 30% for taxes of my side hustle income as well? (So 3000 ?)
@jessicamoorhouse
3 жыл бұрын
You can use a tax calculator to see what would be your average tax rate with both sources of income, but it's always a safe bet to do something like 30%. simpletax.ca/calculator If you over-save, then that just means you've got some extra money to play with after you file/pay your taxes.
@commonboi1
Жыл бұрын
do these taxes have to be filed annually?
@jessicamoorhouse
Жыл бұрын
Yes you file your income taxes annually, however you may have to pay your taxes quarterly instead of annually (similar to pre-paying your income taxes when you work for a company and they take some money of your pay and send to the CRA on your behalf, and if you pay too much you get a tax refund).
@linawu5042
Жыл бұрын
@@jessicamoorhouse would this apply in the first year of Self-employed operation? Should I calculate the forecasted annual income and request my full time employer to deduct additional provincial and federal taxes to avoid getting penalize ?
@doo21leroux
2 жыл бұрын
I already pay CPP through my main job. I have to pay again through my side hustle?
@jessicamoorhouse
2 жыл бұрын
Yes of course. If you earn any self-employed income, you need to pay income tax and CPP on that income too (it's not exempt). To get a sense of how much you'll owe, you can play around with this calculator www.wealthsimple.com/en-ca/tool/tax-calculator/
@haidersyed6554
3 жыл бұрын
Hi, I have a day job but I managed to make some affiliate sales(as a side hustle) and received $4k in commission in 2020 December. There was no business expense, do I just put 4k in simple tax and do the tax calculation?
@jessicamoorhouse
3 жыл бұрын
I haven't personally used SimpleTax but I'm assuming there's a section to input any self-employed income? If so, then put amount of business income you earned. That being said, it's always good to double check if there are some business expenses you can claim (i.e. internet bill, website hosting, etc...).
@haidersyed6554
3 жыл бұрын
@@jessicamoorhouse thank you so much, your video is the best and very simple, keep making more videos please :)
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